Nigeria’s premium crude oil grades continue trading above $65 per barrel despite OPEC+ announcing plans to increase global production by 500,000 barrels per day starting October 2024.
The country’s flagship Bonny Light, Forcados, and Qua Iboe grades are fetching between $65 to $68 per barrel, maintaining a healthy premium to Brent benchmark prices. Analysts attribute this resilience to the high quality of Nigeria’s low-sulfur crude, which European and Asian refiners prize for producing cleaner fuels.
“Despite OPEC’s decision to increase supply, Nigeria’s crude remains competitive due to its favorable refining properties,” explained Kelvin Adegbite, oil market analyst. “Buyers are willing to pay a premium for Nigerian grades, especially as global energy demand remains strong.”
The OPEC+ alliance, led by Saudi Arabia and Russia, agreed to the modest production increase amid concerns about oversupply and economic uncertainties in China and Europe. Oil prices recently fell to four-year lows below $60 per barrel after larger-than-expected production boosts were announced in April.
Industry sources suggest Saudi Arabia is pushing to accelerate the unwinding of previous output cuts to discipline Iraq and Kazakhstan for poor compliance with their production quotas. The move also follows calls from U.S. President Donald Trump for increased output ahead of his planned visit to Saudi Arabia later in May.
Source: businessday.ng
